1. Company Presentation by Joe Romeo

2. Product • Offer incentive to travel frequently with Delta Airlines • Skymiles members can purchase tickets or reduce cost of plain tickets after accumulating miles • Skymiles members can also save miles to obtain special memberships • This includes automatic upgrades to first class, free baggage check-ins, ect.

3. History • Delta Skymiles was founded in 1995 and replaced what was called the “Frequent Flyer” program • In this replacement, Frequent Flyer miles were converted to Skymiles, which came with an expiration date • After many changes to the expiration system, they decided to change back to the original no expiration policy from the Frequent Flyer program in early 2011

4. Financials • Revenue in 2010: 31.76 billion • Shares Outstanding: 834.8 million • Total Cash: 3.61 billion • Total Debt: 15.33 billion

5. Financials • Delta’s Stock (DAL) • Between mid 2007 to mid 2008, Delta’s stock dropped from $20 a share to below $6 per share • Since 2008, the price has bounced back and forth between $5 and $10, but still has not completely recovered from the drop in 2007/2008

6. Target Market Those who have to travel oftenor far

7. Competitors • Spirit Airlines $9 fare club • Offers extremely cheap flights(sometimes $9) • Disadvantages • Membership costs money • No flexibility with location or time of travel • American Airlines Aadvantage • Very similar program to delta • Disadvantage - Miles expire!

8. Secret Sauce • Skymiles, as of February 2011, never expire! • There is incentive to save miles up and become a recognized frequent flyer • The incentives are enough to justify me paying a little extra for a delta ticket over a cheaper airline(ie, free upgrades to first class on coach ticket purchase at 125000 miles)

9. Future of Delta Skymiles • Delta can only last as long as the oil supplies • With the current state of the world, flights will become overly expensive and they will have trouble surviving • They will have to pivot eventually